How To Use Common Law To Manage Your Affairs
“The
general method to be pursued in the analysis of contract is the same as
possession. Wherever the law gives special rights to one, or imposes special
burdens on another, it does so on the ground that certain special facts are
true of those individuals. In all such cases, therefore, there is a twofold
task. First, to determine what are the facts to which the special consequences
are attached; second, to ascertain the consequences. The first is the main
field of legal argument. With regard to contracts the facts are not always the
same. They may be that a certain person has signed, sealed, and delivered a
writing of a certain purport. They may be that he has made an oral promise, and
that the promisee has furnished him a consideration.”
Oliver
W. Holmes
The
world is changing and the evidence is everywhere. It follows that being astute
in managing your own affairs cannot be left to the minds and/or hands of
another. One source of inspiration to enrich my life is listening to
the words of very accomplished people. Donald Trump’s book showed me that
rich people own nothing and control everything. In Warren Buffets book he takes
great lengths to expound his hours and hours of research that went into his
work before taking any action. Most profoundly, Steve Jobs left me with his
sagely advice, “Stay hungry, stay foolish.”
I
have put a great deal of thought and time into the best techniques to
manage my affairs - now and on into the future when I have departed. I have
looked at many legal solutions of a family trust, Limited Liability Corporation
(LLC), a corporation, and generation skipping trust, to name a few.
One
solution that seems most suitable to me is a contract in the form of a business
trust (link), which is similar to an express trust (link)
and a spendthrift trust (link).
These solutions are have their origins in common law. Very briefly, let me
explain the difference between a legal solution (legal or law) and a common law
(lawful) solution. This subject deserves a lengthy explanation at some
point but this is not the place. The legal world we live in was created long
ago. It is based in corporate law that is established under the Washington DC
cooperation: United States of America (USA) (link).
Laws are legal statues created, published, managed, and enforced via agents of
sub corporations of USA. For examples, cites, police departments, water
districts, and so forth.
Common
law, lawfulness, differs from the legal world in that it is based on contracts.
Suffice it to say here that a contract can take many forms, but the key
ingredients is that the parties in the contract recognize their roles and
responsibilities. One decent resource for learning more about contracts is
George Mercier’s book Invisible Contracts (link). To learn more about trusts you have
gotta read Handbook of the Law of Trusts (link).
Every
lawful contract must have these elements: Agreement (offer and acceptance)
consideration, purpose, authentic assent, and be bi-lateral (two parties). A
business trust is based on the Constitution of the United States; Article
l, Sec. 10, Para. 1. It is not a partnership or corporation or statutory trust,
but a separate legal entity having its own common law identity. The document
and all company business shall be kept private, protected by the Privacy Act of
1974, 5 USC 552(a), the Fourth and Fifth Amendments to the Constitution of the
United States, and the common law privacy rights available in the United States
of America and every other applicable jurisdiction.
How
To Run A Business Trust
A
business trust is irrevocable, has Trustees that manage it, and it’s
distributed to the holders of Trust Certificate Units (TCU’s). Yes, this
organization, once put into being, is only dissolved or terminated when its’
assets are distributed to TCU holders by trustees. I like it because the
trustees cannot be TCU holders and the Trustees have full power to manage all
the of the organization affairs, or they can appoint a Managing Director to run
the day to day affairs and then receive reporting at regular Trustee meetings.
TCUs may be surrendered to or transferred back to the
organization subject to the approval of the Board of Trustees, but may not
otherwise be pledged, assigned, hypothecated or transferred by a TCU holder
without the consent of a majority in interest of all other current TCU holders.
TCUs are be immune from seizure by any creditor of the TCU owner.
Purpose of Business Trust
This trust is a contract with provisions intended to create a
common law contractual company, (also known as an Unincorporated Business
Organization) for receiving, conveying or holding property in fee simple, and
for providing prudent management of such property, and for conducting any
legitimate business through appointed Trustees for the benefit of certificate
holders. The Trustees shall hold both legal and equitable title to the trust
estate, and shall act solely within their powers as provided herein and within
their common law rights and immunities. The administration of this organization
shall be amenable to judicial regulation and under the protection of the court.
If any provision herein is unenforceable, the remaining provisions shall
nevertheless be carried into effect. Nothing herein contained shall be
construed as an intent to evade or contravene any law, nor to delegate to the
Trustees any special power belonging exclusively to a statutory company,
franchise or incorporation.
In
my opinion,
1) where most legal solutions provide little separation between the trust and
the grantor, the business trust provides complete separation; and 2) a common
law organization allows for a living solution as trustees have full power to
manage all aspects of the organization, conversely legal solutions provide a meaningful
solution only at death of grantor(s) to distribute the property. Lastly,
without a doubt, there is more responsibility in establishing a trust vehicle
and managing it as a Trustee then letting someone do it all for you. I have
found this type of effort is very rewarding, yet is also requires my
willingness to accept ongoing education both mentally and spiritually.
I
hope you have found this material meaningful and that it assists you in
understanding a wider variety of options to successfully manage your home and
business affairs.
Blessings,
Steu
NOTE: This article in
intended to be educational. Establishing a business trust is not a solution for
everyone. This article does not attempt to explain all the details of
establishing and managing a business trust. Readers should consult a qualified
and professional legal representative to resolve their legal issues.
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